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Internet-Facilitated Drugs Trade Internet-facilitated drugs trade An analysis of the size, scope and the role of the Netherlands Kristy Kruithof, Judith Aldridge, David Décary-Hétu, Megan Sim, Elma Dujso, Stijn Hoorens For more information on this publication, visit www.rand.org/t/RR1607 Published by the RAND Corporation, Santa Monica, Calif., and Cambridge, UK R® is a registered trademark. © 2016 WODC, Ministerie van Veiligheid en Justitie Cover image shared by Jo Naylor via Flickr; CC BY 2.0. RAND Europe is an independent, not-for-profit policy research organisation that aims to improve policy and decisionmaking in the public interest through research and analysis. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. All rights reserved. No part of this book may be reproduced in any form by any electronic or mechanical means (including photocopying, recording, or information storage and retrieval) without permission in writing from the sponsor. Support RAND Make a tax-deductible charitable contribution at www.rand.org/giving/contribute www.rand.org www.rand.org/randeurope Preface The potential role of the Internet in facilitating drugs trade first gained mass attention with the rise and fall of Silk Road; the first major online market place for illegal goods on the dark web. After Silk Road was taken down by the FBI in October 2013, it was only a matter of weeks before copycats filled the void. Today, there are around 50 so-called cryptomarkets and vendor shops where vendors and buyers find each other anonymously to trade illegal drugs, new psychoactive substances, prescription drugs and other goods and services. But it is not just the obscure parts of the Internet where drugs are on offer. There are numerous web shops, easily found by search engines, which offer designer drugs labelled as ‘research chemicals’. The Netherlands occupies a crucial position in European illicit drug markets. Data from the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA 2016a) suggested it is the main producer of MDMA, ecstasy and herbal cannabis and a key distribution hub for cannabis resin and cocaine. Whether the pivotal role of the Netherlands also extents online, has yet been unclear. While there is considerable attention for these new trends in drug markets, the evidence on their size, shape and evolvement is fairly limited. The Netherlands Ministry of Security and Justice has commissioned, through the Research and Documentation Centre (Wetenschappelijk Onderzoek- en Documentatiecentrum, WODC), RAND Europe a study to provide a firmer evidence base to this phenomenon and, in particular, the role of the Netherlands. In this document, we analyse the size and scope of Internet-facilitated drugs trade both on the so-called clear and dark web, paying special attention to the Netherlands, and delineate potential avenues for law enforcement for detection and intervention. To this end, RAND Europe has collaborated with Judith Aldridge (University of Manchester) and David Décary-Hétu (University of Montreal). The views expressed in this document are those of the authors alone and do not represent those of the Ministry of Security and Justice. The authors are fully responsible for any errors that may have occurred. RAND Europe is an independent not-for-profit policy research organisation that aims to improve policy and decision-making in the public interest through research and analysis. This report has been peer- reviewed in accordance with RAND’s quality assurance standards. For more information about RAND Europe or this document, please contact Stijn Hoorens ([email protected]). RAND Europe RAND Europe Rue de la Loi 82, Bte 3 Westbrook Centre, Milton Road Brussels 1040 Cambridge CB4 1YG Belgium United Kingdom Tel. +32 2669 2400 Tel. +44 1223 353 329 iii Table of Contents Preface ......................................................................................................................................................iii Table of Contents ...................................................................................................................................... v Figures ..................................................................................................................................................... vii Tables ....................................................................................................................................................... ix Boxes ........................................................................................................................................................ xi Samenvatting .......................................................................................................................................... xiii Summary .............................................................................................................................................. xxiii Acknowledgements ............................................................................................................................... xxxi Glossary .............................................................................................................................................. xxxiii 1. Introduction ........................................................................................................................... 1 1.1. Objectives and scope ..................................................................................................................... 2 1.2. Research questions ........................................................................................................................ 2 1.3. Structure of this report ................................................................................................................. 4 2. Methodology .......................................................................................................................... 5 2.1. Literature review ........................................................................................................................... 6 2.2. In-depth interviews ....................................................................................................................... 9 2.3. Quantitative analysis of cryptomarket data ................................................................................. 11 2.4. Case file analysis ......................................................................................................................... 20 3. An introduction to Internet-facilitated drugs trade ................................................................ 21 3.1. Drugs trade via cryptomarkets .................................................................................................... 21 3.2. Trends in drugs trade via cryptomarkets ..................................................................................... 27 3.3. Drugs trade and the clear net ...................................................................................................... 29 4. The size and shape of Internet-facilitated drugs trade ............................................................. 33 4.1. Previous studies reporting on the size and shape of Internet-facilitated drugs trade ..................... 34 4.2. The number and size of online marketplaces for drugs ................................................................ 35 v 4.3. Types of drugs offered via Internet.............................................................................................. 38 4.4. Revenues of drugs trade .............................................................................................................. 41 4.5. Wholesale versus retail ................................................................................................................ 45 4.6. Volumes of drugs on offer .......................................................................................................... 49 4.7. Other goods and services ............................................................................................................ 50 4.8. Trends in Internet-facilitated drugs trade .................................................................................... 54 4.9. In sum ........................................................................................................................................ 61 5. Shipping routes ..................................................................................................................... 63 5.1. Country of origin of drugs traded and vendors operating from the Netherlands .......................... 63 5.2. Data on demand side of Internet-facilitated drugs trade .............................................................. 69 5.3. In sum ........................................................................................................................................ 73 6. Actors involved in Internet-facilitated drugs trade .................................................................. 75 6.1. Overview of actors involved in Internet-facilitated drugs trade .................................................... 75 6.2. Vendor characteristics and motives ............................................................................................. 77 6.3. Buyer characteristics, motives and modus operandi ..................................................................... 81 6.4. In sum .......................................................................................................................................
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